Meyer & co. expects its ebit to be $106,000 every year forever. the firm can borrow at 7 percent. the company currently has no debt, and its cost of equity is 14 percent.

a. if the tax rate is 25 percent, what is the value of the firm? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
b. what will the value be if the company borrows $210,000 and uses the proceeds to repurchase shares? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

a. value of the firm
b. value of the

Acompany manufactures x units of product a and y units of product b, on two machines, i and ii. it has been determined that the company will realize a profit of $3 on each unit of product a and $4 on each unit of product b. to manufacture a unit of product a requires 7 min on machine i and 5 min on machine ii. to manufacture a unit of product b requires 8 min on mchine i and 5 min on machine ii. there are 175 min available on machine i and 125 min available on machine ii in each work shift. how many units of a product should be produced in each shift to maximize the company's profit p?